KUCHING: Kim Hin Industry Bhd has submitted an application to Bursa Securities for an extension of time to rectify the company’s shortfall in public shareholding spread.
The ceramic tiles manufacturer said the application for time extension submitted on August 25 is to allow sufficient time for the company to formulate a plan to address the shortfall.
Kim Hin’s public shareholding spread fell to 23.75 per cent on August 22, and is deemed not in compliance with the minimum public shareholding spread requirement of 25 per cent in accordance with Paragah 8.02(1) of the Listing Requirement.
The shortfall was due to some minority shareholders who had sold their shares to company’s controlling shareholders (Kim Hin (Malaysia) Sdn Bhd (KHSB)) and its executive chairman Chuna Seng Huat) (joint offerors) via valid acceptances of the offer shares. The joint offerors had offered 85 sen per share in their bid to privatise the company.
At the closing date of the extended offer on August 25, the joint offerors and persons acting in concert (PACs) increased their combined equity interest in the company to 95,986,700 shares, representing 68.45 per cent of Kim Hin’s total number of issued shares.
Kim Hin has a total of about 140.24 million shares (excluding treasury shares) as they failed to reach the threshold of 90 per cent, the privatisation bid had not therefore materialised.
When the joint offerors announced their privatisation bid on July 4, Kim Hin’s public shareholding spread stood at 29.51 per cent.
Kim Hin reported widened group net loss of RM7.17 million in second quarter ended June 30, 2025 (2Q2025) as compared to losses of RM3.42 million in 2Q2024 as revenue fell to RM51.1 million from RM73.6 million. Losses per share rose to 5.11 sen from 2.43 sen.
In first half of 2025 (1H2025), Kim Hin group net loss worsened to RM10.6 million (1H2024: -RM6.6 million) in tandem with a sharp drop in revenue to RM109.4 million (RM153 million).
In 1H2025, Kim Hin’s Malaysia operation generated sales of RM60.8 million, followed by Australia operation (RM41.7 million), China operation (RM6.48 million) and Vietnam operation (RM414,000).
The Malaysia operation suffered net loss of RM11.58 million, Australia operation in the red of RM3.15 million and Vietnam operation incurred losses of RM333,000.
On the other hand the China operation made a profit of RM4.48 million after it ceased the non-profitable manufacturing operation late last year.
Kim Hin attributed the significant decrease in group revenue in 1H2025 to reduced sales in the group’s Malaysia and Australia geographical segments.
The higher losses were due to lower revenue generated stemming from under-utilisation of production capacity and increased production costs, the company said in explanatory notes to its financial results.
Commenting on prospects, Kim Hin said the company looks to its 2H2025 performance with caution, given the increasingly uncertain global environment, shaped by on-going geopolitical tensions, tariff-related developments and conflicts.
These external challenges are expected to influence the group’s performance, alongside fluctuations in operating costs, foreign exchange volatility and heightened competition in the domestic markets due to an influx of imported ceramic tiles.
“In response, the group remains focused on closely monitoring market developments and proactively managing the risks associated with geopolitical and economic uncertainties. Strategic measures continue to be undertaken to address operational challenges and support sustainable performance moving forward,” it added.
